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  • Assignment #: 2: Supply Chain Management

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    Ammar Alam
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    This document discusses different supply chain management strategies: Direct supplier network involves distributors directly shipping products from suppliers to retailers and wholesalers, with the supply chain manager deciding only quantities. Bread is often distributed this way daily via single vans. Direct shipping with milk runs has suppliers delivering directly to multiple buyer locations on set routes, like Toyota uses between Japan and the US. All shipment via DCs routes all supplier shipments to regional distribution centers (DCs) which then forward products to each store location, as seen with Walmart getting overseas products to US stores. Milk runs can also be done from DCs if lot sizes allow, storing items at the DC and consolidating deliveries

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    Assignment 2

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    This document discusses different supply chain management strategies: Direct supplier network involves distributors directly shipping products from suppliers to retailers and wholesalers, with the supply chain manager deciding only quantities. Bread is often distributed this way daily via single vans. Direct shipping with milk runs has suppliers delivering directly to multiple buyer locations on set routes, like Toyota uses between Japan and the US. All shipment via DCs routes all supplier shipments to regional distribution centers (DCs) which then forward products to each store location, as seen with Walmart getting overseas products to US stores. Milk runs can also be done from DCs if lot sizes allow, storing items at the DC and consolidating deliveries

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    56 views3 pages

    Assignment #: 2: Supply Chain Management

    Uploaded by

    Ammar Alam
    This document discusses different supply chain management strategies: Direct supplier network involves distributors directly shipping products from suppliers to retailers and wholesalers, with the supply chain manager deciding only quantities. Bread is often distributed this way daily via single vans. Direct shipping with milk runs has suppliers delivering directly to multiple buyer locations on set routes, like Toyota uses between Japan and the US. All shipment via DCs routes all supplier shipments to regional distribution centers (DCs) which then forward products to each store location, as seen with Walmart getting overseas products to US stores. Milk runs can also be done from DCs if lot sizes allow, storing items at the DC and consolidating deliveries

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    ASSIGNMENT #: 2

    SUPPLY CHAIN MANAGEMENT


    Direct Supplier Network:
    In Direct Supplier Network the distributor directly distributes products to many retailers and
    wholesalers. With the direct shipment network, the routing of each shipment is specified and
    the supply chain manager only needs to decide on the quantity to ship and mode of
    transportation.

    Bread

    The bread is FMCG item which is consume on daily basis, it can’t be stored so the distribution of
    this product on daily basis is necessary, so a single van distributes bread on every store or retail
    shop, in direct shipping it is on daily basis and a single supplier fulfill the need of many retailers.

    Direct Shipping with milk runs:


    In milk runs a supplier delivers directly to multiple buyer locations on a transportation mode
    with specific route. A milk run is a route on which a truck either delivers product from a single
    supplier to multiple retailers or goes from multiple suppliers to a single buyer location.

    Toyota

    Toyota uses milk runs both in Japan and in the USA to support its Just in Time manufacturing.

    All Shipment via DC:


    Under this option, suppliers do not send shipments directly to buyer locations. The buyer
    divides locations by geographic region and a DC is built for each geographic region. Suppliers
    send their shipments to the DC and the DC then forwards appropriate shipments to each buyer
    location.

    Wal-Mart

    Large super stores like Wal-Mart uses this method of transportation network when they get
    supplied by overseas suppliers. The products are held in inventory at DC and from there it is
    supplied in desired quantity to Wal-Mart store locations.
    Milk runs from DC:
    Milk runs can be used from a DC if lot sizes to be delivered to each buyer location. In milk runs
    warehouse is used for storage and cross talking as well.

    Garments

    Garment manufacturing companies can use Milk runs from DC effectively to reduce their
    transportation cost by asking their suppliers to deliver their items to DC and then send out milk
    runs to retail outlets because the total shipment to a store from all supplier does not fill a truck.

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